NEW YEAR'S RESOLUTIONS REFLECT HOLIDAY SPENDING, CREDIT CARD DEBT

Did you spend too much this holiday season? Have the festivities begun to diminish as rapidly as the funds in your bank account? Many of us find the holidays to be a difficult time financially. Whether you have had trouble making ends meet because of the annual spike in your energy bill or are still feeling the burden from your generous gift-giving, the end of the holidays can bring a lot of financial stress.

A recent article discussed some resolutions that may help you enter into the New Year with your best foot forward. One tip was to review the terms of your credit cards, your credit card debt and make sure you are not paying too much by way of fees and interest.

The use of credit cards is helpful to many because time sensitivity around purchases may not align with available cash. However, in cases like this it is important to pay off the debt as soon as possible. This will help you to avoid interest carrying over from month-to-month.

But what if you can’t even make your minimum monthly payments? Your inability to get a handle on your credit card expenses may have collectors already threatening you with further action. If you cannot make certain payments, you should know that you have options to immediately stop the collectors in their tracks and grant yourself time in which to decide how best to settle your finances and debts.

Depending on your financial situation, bankruptcy options like Chapter 7 and Chapter 13 might be a wise choice. Seeking knowledgeable legal counsel on bankruptcy filings and proceedings will help you determine what is best for you as you move into the New Year.

Source: Parade, “Ask Carrie: Year-End Financial Checklist-10 Smart Ways to Bring 2013 to a Close,” Carrie Schwab-Pomerantz, Dec. 23, 2013